Income

The total income for the construction industry in 2020 was R436,7 billion. The total income represents a decrease of 2,4% per annum over the income reported in the corresponding survey of 2017 (R470,1 billion). Comparing 2017 and 2020, a large decrease was reported for ‘construction of civil engineering structures’ (-R58,8 billion). However, large increases were reported for ‘construction of buildings’ (R18,2 billion) and ‘electrical contractors’ (R5,6 billion) over the same period.

Between 2011 and 2020, ‘construction of civil engineering structures’ lost the biggest percentage share of income (-14,1 percentage points) (from a percentage contribution of 43,4% in 2011 to 29,3% in 2020). ‘Construction of buildings’ gained the biggest percentage share of income over the same period (+7,7 percentage points) (from 23,0% in 2011 to 30,7% in 2020).

In 2020, the top 100 enterprises in the construction industry contributed 28,1% to the total income. The concentration ratios of the top 5, 10, 20 and 50 were the highest in 2011 at 15,6%, 20,5%, 25,8% and 33,0%, respectively.

The profit margin for the construction industry was 2,2% in 2020. ‘Site preparation’ had the highest profit margin at 5,8%, followed by ‘other building completion’ at 4,9%. ‘Construction of civil engineering structures’ had the lowest profit margin with a loss of 0,3%.

Between 2011 and 2020, the construction industry recorded the highest overall profit margin of 3,5% in 2017. The highest profit margin by type of service was ‘shopfitting’ and ‘site preparation’, each at 9,4% in 2014.

Employment

The total number of persons employed in the construction industry as at end of June 2020 was 473 214. This represents a decrease of 7,2% per annum over the employment reported in the corresponding survey of 2017 (592 125). Comparing 2017 and 2020, large decreases were reported for ‘construction of civil engineering structures’ (-89 010 jobs), ‘construction of buildings’ (‑17 972 jobs), ‘construction by specialist trade contractors’ (-10 480 jobs) and ‘other building installation’ (-8 505 jobs).

Between 2017 and 2020, ‘construction of civil engineering structures’ lost the biggest percentage share of employment (-9,9 percentage points) (from a percentage contribution of 35,5% in 2017 to 25,6% in 2020).

The proportion of females out of the total persons employed was 15,7%. The sector with the highest proportion of females was ‘site preparation’ (19,9%) whilst ‘painting and decoration’ had the highest proportion of males employed (88,9%)

The average value of salaries and wages in the construction industry in 2020 was R150 845, representing an annualised increase of 3,3% compared with 2017. In 2020, ‘renting of construction or demolition equipment with operators’ reported the highest average salaries and wages (R231 248). However, ‘construction of other structures’ reported the highest annualised increase between 2017 and 2020 (13,9%).

Capital expenditure on new assets

The total capital expenditure on new assets in the construction industry in 2020 was R11,1 billion. The largest contributor to total capital expenditure was ‘renting of construction or demolition equipment with operators’ (R3,8 billion or 34,2%), followed by ‘construction of civil engineering structures’ (R2,2 billion or 20,0%) and ‘construction of buildings’ (R1,5 billion or 13,1%).

The capital expenditure on new assets of R11,1 billion in 2020 represents a decrease of 6,1% per annum over the expenditure reported in the corresponding survey of 2017 (R13,4 billion). Comparing 2017 and 2020, ‘renting of construction or demolition equipment with operators’ shows the largest increase (+R1,1 billion) and ‘construction of buildings’ shows the largest decrease (‑R1,7 billion).